The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-08-04
INTEREST ANTICIPATED
Secretary Fairohild Issues an Impor-
tant Circular.


WASHINGTON, Aug. 3.-The following
Treasury circular was issued by Secretary
Fairchild to-day;
"By virtue of the authority contained In
section 5000 of the Revised Statutes of the
United States, notice Is hereby given that
interest due Sept / and Dec. |, 1887, on the
41S per cent bonds OF the United States,
Oct, 1, 1887, and Jan. l, 1888, on per cent.
bonds, and Jan. l, 1888, on bonds issued in
aid Of the Pacific railroads, win be prepaid
on and after Aug. 10, 1887 with re-
bate at the rate of per cent. per annum
Oh the amounts prepaid. Tho coupons duo
on the above specified dates may be pre-
sented for prepayment at the Treasury of
the United States In Washington or ut the
of{ice of any Assistant Treasurer of the
United States. Applications for prepay
ment of interest on registered bonds may
be made to the Secretary Of the Treasury
III the form prescribed Registered
bonds, upon which interest has
been prepaid, may be transferred upon the
books of the department In the usual man
ner, if accompanied by a release signed by
new ownors of adj claim TO prepaid interest,
and the department. will furnish to the
owners, on application, certificate that the
interest ON their bonds has or has not been
prepaid, as tho case may be
NObiCe IL ulSO SlNOll tiiaib III VI
the provisions Of section 1904 OF the Revised
Statutes proposals for the sale TO the gov
ernment of United States ~ per cent.
bonds Of 1891, acts of July Ia, 1870, and
Jan. 90, 1871, to be applied to the sinking
fund will be received and opened at the
office of the Secretary of the Treasury in
Washington, at noon, on Wednes-
day, Aug. 10, 1887, and on
each Wednesday thereafter until further
sI,a a.,
character OF tho bonds offered, whether
registered or coupons, and must be for the
sale of the bonds with accrued interest TO
and including the day of sale, whether the
interest thereon has or has not been prepaid;
and adjustment of prepaid interest on bonds
purchased under this circular will be made
when payment for the bonds is made The
right Is reserved to reject any or all pro
poSals for the sale of bonds if it is thought to
be for the interest of the government to do
So"
Secretary Fairchild said this afternoon,
in explanation of his action offering to an
ticipate interest on the public debt and to
purchase bonds, that he did it simply be-
cause he regarded it as the best thing that
could be done under the circumstances The
purchase of bonds, he said, is for the pur
pose of providing for the sinking fund, and
anticipation OF interest is for the
purpose of getting rid of the surplus. The
latter operation. he said. is only what any
good business man would do to discount his
obligations. Anticipation of interest is one
of two means given TO the Secretary of
the Treasury for disposing of surplus
funds and he regarded it as
the cheapest and most advantageous. The
interest covered by the circular amounts to
1928, 1917 81. 1t is impossible just now to
state the exact amount of the rebate The
sinking fund rpouirpfunnfs ill nlnOunt to
about S26, ,000,0 coo in addition. % $4,000, 900
of 3 per cent. bonds already applied. The
surplus, said Secretary Fairchild, can be
put out only through the cooperation of the
bondholders and If they do not accept the
terms of the proposition made to them it
would seem that they are not in very great
need of money.